Support department cost allocationBlue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Framing production departments are supported by the Janitorial andSecurity departments. Janitorial costs are allocated to the production departments based on square feet, and security costs are allocated based on asset value.Information about these departments is detailed in the following table:Square feetAsset valueJanitorialDepartment760$900$5,200SecurityDepartment1,040$1,240$6,600a. Direct cost allocation. method.b. Sequential cost allocation method.c. Reciprocal cost allocation method.d. None of the above.dXPrintingDepartment4,230$12,390$33,000FramingDepartment4,770$8,610$29,000Department costManagement has experimented with different support department cost allocation methods in the past. The different allocation methods did not yield large differences ofcost allocation to the production departments.1. Determine which support department cost allocation method Blue Mountain Masterpieces would most likely use to allocate, its support department costs to theproduction departments.2, Determine the total costs allocated from each support department to each production department using the method you determined in part (1).

Answer:- The complete amount of money spent on a product is its total cost. Because overhead…

Support department cost allocation Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Framing production departments are supported by the Janitorial and Security departments. Janitorial costs are allocated to the production departments based on square feet, and security costs are allocated based on asset value. Information about these departments is detailed in the following table: Janitorial Department 760 $900 $5,200 Security Department 1,040 $1,240 $6,600 a. Direct cost allocation method. b. Sequential cost allocation method. c. Reciprocal cost allocation method. d. None of the above. -X Printing Department 4,230 $12,390 $33,000 Framing Department 4,770 $8,610 $29,000 Square feet Asset value Department cost Management has experimented with different support department cost allocation methods in the past. The different allocation methods did not yield large differences of cost allocation to the production departments. 1. Determine which support department cost allocation method Blue Mountain Masterpieces would most likely use to allocate its support department costs to the production departments. 2. Determine the total costs allocated from each support department to each production department using the method you determined in part (1).

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1PA: Support department cost allocation Blue Mountain Masterpieces produces pictures, paintings, and...